Types of Salt Lake City property management companies

Types of Salt Lake City property management companies

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Salt Lake City property management company pricing structures

 

While every Salt Lake City property management company sets their own pricing, most companies tend to fall into one of two categories. They will either charge a flat rate to cover a variety of services or they will charge you a fee for each unique task performed. Let’s examine the pro’s and con’s of each type.

Flat fee pricing structure

Advantages: With flat fee pricing, you know exactly what you will be charged every month. You can take comfort knowing that all of the necessary tasks are being handled and that the cost to you won’t change based on the amount of work being done.

Disadvantages: You are paying the same amount each month regardless of what work is being done. Salt Lake City property management companies know that most of the “work” takes place when the property is vacant. Once a tenant move in, your manager is probably doing little more than processing payments and fielding the occasional maintenance call.

Fee based pricing structure

Advantages: With a fee-based structure, you only pay for work that is actually being done on your behalf. You don’t need to worry that you overpaid for the services you actually received. If you have a “low maintenance” property with good tenants, then you will likely benefit from this type of pricing.

Disadvantages: Your Salt Lake City property management costs will fluctuate based on the work required for your property. If your property requires a lot of attention or you have problem tenants, then your management costs could get out of hand.

As you can see, there are advantages and disadvantages to each type of pricing structure. The option that’s best for you will depend on the specifics of your rental property and your unique management needs. Learn more about how our pricing structure can meet your needs by clicking here.

Salt Lake City Property Management Costs

Salt Lake City Property Management Costs

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How much should you pay your Salt Lake City property management company?

 

This is a common question, and if you talk to 10 different managers you’ll likely get 10 different answers. Pricing structures will vary and the answer usually lies in what services they are providing. Let’s review a few common services provided by Salt Lake City property management companies.

Basic Services – Basic Salt Lake City property management services include advertising, conducting showings, screening applicants, providing legal forms, negotiating the lease with your tenant, collecting rent, providing statements and coordinating maintenance. These services are usually categorized as “management fees” and you can expect to pay 7-10% of collected rents. Make sure you ask exactly what services you’ll be receiving and get everything in writing.

Fees – Most Salt Lake City property management companies will have additional fees above whatever their management fee percentage may be. These fees are typically charged for signing up or setting up your account, placing or renewing tenants, marketing, performing inspections or annual charges. Fees may range from $30 to $500 or more for some leasing charges. Make sure you know exactly what fees your property manager charges and how much they cost you.

Other Charges – There are a lot of different scenarios that can occur during a lease term and most Salt Lake City property management companies will include language in their agreements to cover them if work is required that goes beyond the scope of their management agreement. These include evictions, court appearances, cases of abandonment, and other reasons. Be sure to read the entire agreement before you sign so these types of charges don’t catch you by surprise.

At the end of the day, management costs will vary between companies and the key is to hire whichever manager makes you the most comfortable. A few extra dollars per month is a small price to pay for quality management. If you want to discuss our pricing structure, please contact us today.